coca cola presentation asug ga march 1

…and the systems required to do it…

Forward-Looking Statements This presentation may contain statements, estimates or projections that constitute “forward-looking statements” as defined under U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will” and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from The Coca-Cola Company’s historical experience and our present expectations or projections. These risks include, but are not limited to, obesity and other health concerns; scarcity and quality of water; changes in the nonalcoholic beverages business environment, including changes in consumer preferences based on health and nutrition considerations and obesity concerns; shifting consumer tastes and needs, changes in lifestyles and competitive product and pricing pressures; risks related to the assets acquired and liabilities assumed in the acquisition, as well as the integration, of Coca-Cola Enterprises Inc.'s former North American business; continuing uncertainty in the credit and equity market conditions; increased competition; our ability to expand our operations in developing and emerging markets; foreign currency exchange rate fluctuations; increases in interest rates; our ability to maintain good relationships with our bottling partners; the financial condition of our bottling partners; increases in income tax rates or changes in income tax laws; increases in indirect taxes or new indirect taxes; our ability and the ability of our bottling partners to maintain good labor relations, including the ability to renew collective bargaining agreements on satisfactory terms and avoid strikes, work stoppages or labor unrest; increase in the cost, disruption of supply or shortage of energy; increase in the cost, disruption of supply or shortage of ingredients or packaging materials; changes in laws and regulations relating to beverage containers and packaging, including container deposit, recycling, eco-tax and/or product stewardship laws or regulations; adoption of significant additional labeling or warning requirements; unfavorable general economic conditions in the United States or other major markets; unfavorable economic and political conditions in international markets, including civil unrest and product boycotts; litigation uncertainties; adverse weather conditions; our ability to maintain brand image and corporate reputation as well as other product issues such as product recalls; changes in, or our failure to comply with, laws and regulations applicable to our products or our business operations; changes in accounting standards and taxation requirements; our ability to achieve overall long-term goals; our ability to protect our information technology infrastructure; additional impairment charges; our ability to successfully manage Company-owned or controlled bottling operations; the impact of climate change on our business; global or regional catastrophic events; and other risks discussed in our filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for the year ended December 31, 2011 and our subsequently filed Quarterly Reports on Form 10-Q, which filings are available from the SEC. You should not place undue reliance on forward-looking statements, which speak only as of the dates they are made. The Coca-Cola Company undertakes no obligation to publicly update or revise any forward-looking statements.

Reconciliation to US GAAP Financial Information The following presentation includes certain "non-GAAP financial measures" as defined in Regulation G under the Securities Exchange Act of 1934. A schedule is posted on the Company's website at TheCoca-ColaCompany.com (in the “Investors" section) which reconciles our results as reported under General Accepted Accounting Principles and the non-GAAP financial measures included in the following presentation.

2

2020 Vision: Our Roadmap for Winning Together

• Profit: More Than Double System Revenue

• People: Be a Great Place to Work

• Portfolio: More Than Double Our Servings Per Day

• Partners: Be the Most Preferred Beverage Partner

• Productivity: Manage for Greatest Effectiveness

• Planet: Global Industry Leadership in Sustainability

3

Coca-Cola Refreshments

19%

Coca-Cola FEMSA

11%

BIG 10%

Coca-Cola Hellenic

8% Arca

Continental 5%

CCE 5%

Swire 4%

Coca-Cola Icecek

3%

COFCO 2%

SABMiller 2%

All Other 31%

Nearly 275 Bottling Partners creates a highly complex technical eco-system

CCR + BIG =

29% of 2011 KO

System Volume

Top 10 = ~70% of Global Volume

4

One Shared Destination: 2X System Revenues…not 2x cost basis

• Profit: More than double system revenue, while increasing system margins

• People: Be a great place to work

• Portfolio: More than double our servings per day

• Partners: Be the most preferred beverage partner

• Productivity: Manage for greatest effectiveness

• Planet: Global industry leadership in sustainability

2010 2020

$100

>$200

Our Goals KO System Est. Net Revenue (US$ Billion c/n)

5

How Big is $200 Billion?

6

The Business that We Will Double: Sales into 200+ Countries, with operational footprint in 107…massive breadth without depth creates a challenge to standardize

29%

22% 18%

16%

15%

26.7 Billion Unit Cases Sold in 2011

1.2 Billion Incremental Unit Cases in 2011 (equivalent to 1 Japan, 2 Indias or 3 Russias)

2011 KO System Volume

7

Pacific North America

Europe

Eurasia/ Africa

Latin America

27%

29%

9%

9%

3%

7%

11%

Rest of World

3%

$40 Trillion

China

US

Europe

India

Japan

Latin America

ASEAN

Middle East & N. Africa

Sub-Saharan Africa

2% 1% 21%

25%

14%

10%

6%

6%

4% 2%

1% 10%

$71 Trillion

India

Latin America

US

Europe

ASEAN

Middle East & N. Africa

Rest of World

Japan

ASEAN

China

Sub-Saharan Africa

Personal Consumption will Increase by 80% by 2020 – systems must accommodate “shift” to edge

2011 Global Personal Consumption

2020 Global Personal Consumption

8

Note: Figures do not sum to 100% due to rounding.

Roadmap To New Application Architecture Foundation

Finance & Logistics Out of Standard Support Since 2010 High Customized – 25X Complex Infrastructure > 100 Servers Tightly Coupled Non-Standard Interfaces

Financial Roadmap Options to stabilization &

simplification

2012 2013 2014+ 2011 2010

2012

Classified - Internal use 9

Enterprise Performance Management Out of Standard Support Since 2012 Complex Solution – BPC/BOFC/FIM Complex Infrastructure > 175 Servers Tightly Coupled Non-Standard Interfaces

Treasury Roadmap in process for Wall Street and Reval cloud solutions

Simplified Business Increased Capabilities Higher Performance

Speed to Deliver Reduced Lost Work Time Reduced Costs

Why are we today and where do we want to be?

The current SAP solution does not meet business needs, is complex and expensive to maintain: a new Enterprise Platform would …

10

Traditional

Concentrate

Business

Financial Accounting

Order Management So

urc

ing

& P

rocu

rem

en

t

Man

ufa

ctu

rin

g &

Fu

lfil

lmen

t

Geography X

Geography 1

Geography 2

Geography 3

Man

ufa

ctu

rin

g &

Fu

lfil

lmen

t

Man

ufa

ctu

rin

g &

Fu

lfil

lmen

t

Ma

nu

factu

rin

g &

Fu

lfil

lme

nt

From a platform that is challenged to meets Business needs…

• Fragmented business processes that are highly localized

• Highly customized and outdated back-office platform designed for a concentrate business

• Unstable platform driving operational disruptions and negative user experience

• Inflexible and inability to rapidly deliver new capabilities and adapt to new business models

Concentrate

Global Juice Coffee

Energy

DPS

Water

Freestyle

Globalized Region Finance Centers

Dairy

Glo

ba

lized

CP

S F

un

cti

on

Glo

ba

l Su

sta

ina

ble

Pro

cu

rem

en

t

Collaborative/Integrated Supply Chain

Global, Common, Standardized SAP for TCCC*

To a platform that enables 2020 Vision and drives a competitive advantage…

Sports Drinks

• Integrated and sustainable global processes, master data and process governance

• Standardized and simplified processes across core operational routines

• Increased system stability that results in lower run costs

• Flexible infrastructure that is better able to support and provide new capabilities

* Excludes CCR & BIG Globalized Shared Services

Supplier Collaboration

Classified - Internal use

Finance & Logistics Complexity Customization is expensive !!!

Benchmark Profile

• Represents implementations occurring within the last 5 years

• Top quartile of “Very High” and “High” benchmark

• $25B+ revenue

• >18,000 users

• Global profile (>50 countries)

• 9+ core SAP modules (i.e., FI, CO, HCM, MM, PP, SD, WM, QM, PM, etc.)


Benchmark “Average”

SAP ACN

Benchmark “High”

SAP ACN

Benchmark “Very high”

SAP ACN

300 725 1,250 1,285 2,550 2,100

1X Customization Cost



Current TCCC

Customization

If Reduce TCCC Customization by

80%

50,907 10,000

25X 7X Customization Cost

Not a Sustainable Design

Decision Point

How aggressive can we be in removing customization?

Both the volume of incidents and unplanned FILO downtime continue to increase.


•FILO incidents continue to rise month over month with volumes increasing by approximately 10% since 2011

• Incident distribution : • 2011 - FI: 50%, LO: 50% •2012 - FI: 60%, LO: 40%

• While resolution time has be cut in a half, total

time to resolve incidents accounts for over 250,000 hour per month on average in 2012

Unplanned FILO system downtime has increased by almost 4 times since 2011 to an average of approximately 6.5 hours per month

The Hidden Cost of Complexity SAP PLATFORM

0

100

200

300

400

500

600

700

800

900

Uplanned FILO System Outage (minutes)

0

500

1000

1500

2000

2500

Total Number of FILO Incidents

Finance & Logistics Decisions Customization Impacts


Traditional Approach • Customizations will be difficult to rationalize out • Tendency to always need enhancements to gain

capability as upgrading is difficult • On-going costs tending upward with increased

customization

10k

20k

30k

40k

50k

Yr 1 Yr 2 Yr 3 Yr 4

Traditional

Greenfield

Cu

sto

miz

atio

ns

Traditional

Greenfield

Greenfield Approach • Facilitates a return to standard utilizing Industry templates

and process best practices • Managing to a very low amount of re-customization is the

key cost driver • Transition to Life Cycle Management

10M

20M

30M

Yr 1 Yr 2 Yr 3 Yr 4

Traditional

Greenfield An

nu

al O

n-G

oin

g Sp

en

d

Customization or Vendor Delivered Capability? Vendor Delivered Capability is Lowest On-Going Cost

Limited Customizations X86/Cloud Architecture

The Greenfield approach enables 2020 Vision through a sustainable and scalable business model

...

Greenfield Approach

Building Business Capabilities

14

2013 2014 2015 2017 2016

Business As Usual

Minor Updates

Increased risk of major failure

Upgrade

Project 1

Project 2

Project …

New Capabilities Limit Reached

X

Y

Z

Upgrade Approach • Does not enable 2020 Vision • Iterative capabilities and solution

simplification (projects) • Higher time / cost and lower benefit • Business risk as each project is a silo • Requires on-going coordination and

interdependency with CCR

Do Nothing – Business As Usual • Does not enable 2020 Vision • Solution is not sustainable • Significantly increased impact on

business continuity • Requires on-going coordination and

interdependency with CCR

Bu

sin

ess

Cap

abili

ty

Greenfield Approach • Enables 2020 Vision • Faster to end state • Sustainable and scalable business model • One-off organizational impact (end to end

process design and test) • Flexible foundation for more efficient

capability improvements


Help to Sell

Sell Coke

Standardized Processes for core financial processes & US GAAP reporting

Business Intelligence to provide Value chain economics to drive Profitable growth

Good Complexity that provides BI to sell product

Design Orientation

Va

lue

Ori

enta

tio

n

High

Low

Corp - GBS A/P,AR, GL,SD – P2P - CPS

Groups BU’s – Bottlers

Tax & Treasury

Business Systems Landscape/Architecture Towards 2020


Private Cloud or Hana Decision

Currently Finance & Logistics and Enterprise Performance Management run on proprietary hardware which will be ready for Life Cycle Upgrades in 2017.

Hana is SAP’s in-memory computing solution to enable increased performance and speed

Recommended Decision

Architect for HANA

Deploy on private cloud. Note – Cannot go to private cloud with FILO upgrade due to highly customized state

Move to Hana as performance requires


Governance Key Drivers


Key Driver Description

1. Governance and Sponsorship

• Strong “Top Down” governance and sponsorship is critical to delivering a greenfield implementation successfully simplification, standardization and automation

• This includes setting clear program direction and driving alignment & decisions

2. Planning and Preparation

• Executing a formal and rigorous planning phase is also essential • A small core team that develops the up-front detailed deliverables (approach,

scope, costs, team structure etc.. ) will allow for an accelerated timeline

3. Adoption Level of Industry Solution

• Rapid, time-box driven design with “the right SME” – Why Not Approach • Level of commitment to limit customizations • A team that is familiar/experienced in delivering the industry template

4. Change Management

• Strong training and communication program • Standardization and reengineering of supporting business processes

5. Team Delivery Capability

• A team familiar/experienced in delivering in this model combined functional and technical expertise

6. Stop At Anytime • Unless “playing by rules” to achieve success – STOP PROJECT

Six key drivers will have a significant impact on the time required to

deliver a successful implementation